Chancellor Rachel Reeves appeared before MPs today at a hearing of the House of Commons Treasury select committee
The Chancellor has delivered a clear verdict on the triple lock’s future at a hearing of MPs. Rachel Reeves appeared today at the House of Commons Treasury select committee.
She faced a number of questions during her appearance about the Budget, future tax rises and many other issues. But one simple query in particular stood out.
Speculation has been mounting that ministers might shift to a so-called “Single Lock”, using only one benchmark to set future increases, in order to make savings. Some economists and think tanks have argued that the Triple Lock will have to go to ensure the State Pension remains affordable for the government. Others have suggested bringing in some form of means-testing to cut payments to the wealthy, while some have argued for accelerating the rise in the state pension age.
Conservative MP Dame Harriett Baldwin challenged the Chancellor directly, asking whether she would rule out a raft of contentious future tax and pension reforms. She said: “Last year, I asked you if you were planning any overhaul of council tax. You said, no, we’re not looking at that.
“I asked you if you were looking at road pricing. You said, no, we’re not looking at road pricing. I would argue that you’ve started the process on both of those in this Budget.”
But, looking ahead, she then asked: “There are a couple more measures that I think the public out there would be very interested in hearing if you can rule those out. Capital gains on primary residences. Are you planning to do that in this Parliament, and are you planning to change the state pension to a single lock in this.”
The Chancellor replied with a single word: “No.” The response will be a relief to millions of Britain’s elderly. Under the Triple Lock, pensioners are guaranteed an increase according to the highest of three measures – CPI inflation, average earnings growth, or 2.5%.
Her categorical response suggests the Triple Lock will continue until at least 2030. Rachel Reeves later reinforced that position, telling MPs: “Yes,” when asked again whether the guarantee would remain in place.
It comes as the policy faces mounting scrutiny, with the OBR warning that the annual cost of maintaining the Triple Lock could hit £15.5 billion by 2030 – around three times higher than originally forecast. Next April, the State Pension will rise by 4.8%, in line with wage growth – the highest of the three Triple Lock measures this year.
The full new State Pension will increase to £241.30 a week or £12,547.60 a year, an annual boost of almost £575. The basic State Pension will rise to £184.90 a week – or £9,614.80 a year – giving pensioners an extra £439.40.
The Chancellor faced a stormy session as MPs grilled her over Budget leaks, Treasury security failures and accusations that she overstated a fiscal “black hole” to justify imposing £30 billion in tax rises. Ms Reeves acknowledged there had been “too many leaks”, saying the speculation had been “very damaging”, and confirmed a formal investigation was under way.
She insisted the controversial extension of frozen income tax and National Insurance thresholds was “not a breach of the manifesto” – even though millions will now pay higher tax rates due to so-called “fiscal drag”.
The Chancellor also rejected the idea she had misled the public about the state of the public finances. Ms Reeves told the committee that she and the Prime Minister had jointly decided to abandon a previously-planned income tax rise, adding: “We were able to keep the contribution from working people as low as we possibly could.”
